Aasb 114 Executive Summary
AASB 114
Under AASB 114, financial report’s segment reporting of an entity should to separated into two main sections: business segments and geographical segments.
Business segment is a distinguishable component in an entity that differentiate with others with their similar nature of products or services, production processes, class of customers, production or distribution of products and potentially regulatory environment.
Geographical segment is another distinguishable component which location has similar economic and political conditions; relationships in operations; proximitiy; any other risks such as regulatory risks, currency risks etc. As a large organisation may often have hundreds of business segments, what was the standard …show more content…
Incurs revenues and expenses
2. Has operating results that regularly review by entity’s chief operating decision maker
3. Separate financial information is available.
To demonstrate the difference of number of reportable segments between AASB 114 and AASB 8. We have compared segment reports of 2009 (which was using AASB 114) and 2010 which has already adopted AASB 8 for both Qantas and Woolworths. Woolworths
Under AASB 114, there were 5 business segments in segment reporting in stated in 2009’s annual report: supermarket group, general merchandise group, consumer electonics group, hotels group, wholesale group.
In 2010 when AASB 8 was adopted, the number of reportable segments in woolworths increased from 5 into 6 segments, by removing 2 segments: general merchandise and wholesale group and adding in 3 new segments: Australian food and liquor, petrol and Big W.
Comparing to the 2009’s business segments, the new operating segments clearly demonstrated 6 different types of products or services provided by Woolworths and which are sensible to be managed by individual segment manager. This approach does not merely facilitates the company in a way of the synchronization with the internal reports, it also helps investors to understand more about the nature of business in Woolworths and its …show more content…
That may possibly means these segments are suitable for both accounting standard and matched internal reporting purposes.
For this reason, more years of annual report have been used to validate the above presumption.
In 2013, Qantas segment have been separated into Qantas domestic and Qantas International. Together with Qantas loyalty and Qantas freight, there formed the 4 Qantas segments. The second segment Jetstar group standalone as a separate segment. Therefore, Qantas remains with 5 operating segments throughout the recent few years with slight changes of component and segment grouping. Quantitative
Under AASB 114, financial report’s segment reporting of an entity should to separated into two main sections: business segments and geographical segments.
Business segment is a distinguishable component in an entity that differentiate with others with their similar nature of products or services, production processes, class of customers, production or distribution of products and potentially regulatory environment.
Geographical segment is another distinguishable component which location has similar economic and political conditions; relationships in operations; proximitiy; any other risks such as regulatory risks, currency risks etc. As a large organisation may often have hundreds of business segments, what was the standard …show more content…
Incurs revenues and expenses
2. Has operating results that regularly review by entity’s chief operating decision maker
3. Separate financial information is available.
To demonstrate the difference of number of reportable segments between AASB 114 and AASB 8. We have compared segment reports of 2009 (which was using AASB 114) and 2010 which has already adopted AASB 8 for both Qantas and Woolworths. Woolworths
Under AASB 114, there were 5 business segments in segment reporting in stated in 2009’s annual report: supermarket group, general merchandise group, consumer electonics group, hotels group, wholesale group.
In 2010 when AASB 8 was adopted, the number of reportable segments in woolworths increased from 5 into 6 segments, by removing 2 segments: general merchandise and wholesale group and adding in 3 new segments: Australian food and liquor, petrol and Big W.
Comparing to the 2009’s business segments, the new operating segments clearly demonstrated 6 different types of products or services provided by Woolworths and which are sensible to be managed by individual segment manager. This approach does not merely facilitates the company in a way of the synchronization with the internal reports, it also helps investors to understand more about the nature of business in Woolworths and its …show more content…
That may possibly means these segments are suitable for both accounting standard and matched internal reporting purposes.
For this reason, more years of annual report have been used to validate the above presumption.
In 2013, Qantas segment have been separated into Qantas domestic and Qantas International. Together with Qantas loyalty and Qantas freight, there formed the 4 Qantas segments. The second segment Jetstar group standalone as a separate segment. Therefore, Qantas remains with 5 operating segments throughout the recent few years with slight changes of component and segment grouping. Quantitative